LAN to buy AIRES

LAN Airlines is to acquire 98.942% of the outstanding shares of Colombia’s AIRES, the carrier which recently became the first South American operator of the Bombardier Q400.

The acquisition is subject to a due diligence process and compliance with all corresponding regulatory requirements and authorisations, as well as the incorporation of Colombian shareholders into the company.

The purchase price is $32.5 million, to be adjusted according to variations in AIRES’ debt between the value at closing of the transaction and the value as stated in the company’s financial statements as of 31 August 2010. The estimated timeframe to conclude due diligence and finalise the acquisition is between 30 and 60 days from the signing of the agreement.

AIRES was founded in 1980 and currently has a 22% market share in the Colombian domestic market across 27 destinations within the country. The carrier also has three international destinations. In addition to its four Q400s, the company’s fleet consists of nine Boeing 737-700s and 11 Bombardier Q200s.

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